A clear view of water price plans

THE prices households will pay for water services from the middle of next year are under scrutiny as Victoria’s economic regulator reviews price proposals from the state’s water businesses.

The Essential Services Commission (ESC) has received submissions from water businesses outlining their plans for prices applying from July 1, 2018.

These include Barwon Water, which supplies water to the Geelong region from as far north as Little River to as far south as Apollo Bay.

Barwon Water’s submission notes that prices for its residential users will decrease by an average of 7.4 per cent in 2018/19 and in 2023 will not be higher than 2017/18 prices in real terms, non-residential prices will remain the same in real terms for the next five years, and charges for recycled water will be reduced to encourage its use.

ESC chair Ron Ben-David said it was the first water price review under a new approach designed to give customers more say.

“The new framework is all about the water companies shifting their focus to demonstrating value for money, and engaging their communities in determining priorities.”

The new pricing framework is aimed at increasing efficiency across the sector and delivering outputs that matter to customers.

The new framework provides stronger incentives for water businesses to deliver better value to customers with the rate of return they claim linked to the level of ambition in their pricing proposals.

Dr Ben-David said the new approach offers the sector incentives to pursue cost efficiencies and deliver better services.

“Water businesses were required to assess the level of ambition in their own plans, with a leading proposal expected to demonstrate significant improvement in the value of services delivered to customers.”

Customers are now being asked to have their say on the water plans, with submissions available for comment on the commission’s website at esc.vic.gov.au/waterpricereview.

Initial submissions should be sent to [email protected] by November 10.

Customer feedback will be considered as part of the commission’s initial assessment ahead of its draft decisions. More feedback on the proposals will be invited at that time.